Maranoa Mayor Robert Loughnan says he is still overwhelmed by the generosity shown to flood-affected communities across Queensland's southern inland.

Hundreds of homes at Mitchell and Roma were flooded this month.

Mr Loughnan says insurance money is now starting to flow for some flood-affected residents in Mitchell, east of Charleville.

He says almost three-quarters of homes in Mitchell were flooded.

Mr Loughnan says Mitchell's recovery is progressing and hopes tourists will support the region in the coming months.

"Probably wouldn't mind seeing an inch of rain just to clean off some of those streets and things around the place, but the mowing's underway," he said.

"To be honest to drive up the main street, you wouldn't believe it was a flooded CBD.

"It looks really beautiful and I am really hopeful the tourist season in the next couple of months, people will come just to look at the recovery because it has been quite dramatic."

Bakery offer

He says the town's CBD is getting back to business.

"The Mitchell bakery, which is one of the top bakeries in southern Queensland, has been offered by a major consortium a complete re-fit of its bakery facilities," he said.

"In the absence of flood insurance, that's a great win for the community because that bakery is really the hub of the CBD in Mitchell and people just gravitate to it."

He says he hopes people support local retailers as they re-fit their homes.

"The one thing I am trying to impress on people this week as they are getting their insurance money and getting some good news about how they can re-fit their houses, is to repay some of that generosity by shopping locally," he said.

"It is really important that people remember it is their local communities that have got them through the mop-up stages of the recovery, but we all need to help each other in this.

"It's important to shop locally first before you look at your other options."

Hospital expansion

Meanwhile, a $2.7 million expansion has been announced for the local hospital to expand aged care services.

Queensland Health says the three tiers of government have come together to expand and improve residential aged care services in Mitchell.

The Commonwealth has agreed to provide an extra $508,000 a year to fund an extra 10 aged care beds at the Mitchell Multi-purpose Health Service.

Queensland Health will provide land and staffing for the expansion, while the Maranoa Regional Council will fund the $2.73 million cost of building a new wing.

The Maranoa council says it will ensure the Mitchell community has an adequate and sustainable aged care facility into the future.

Construction is due to begin mid-year and should be completed early to mid-2013.

Mr Loughnan says it is a practical solution to the community's aged care needs.

"It's going to be an expensive project - $2.73 million," he said.

"We do have a contribution there from one of our resource companies in Santos of $100,000, which will slightly diminish the cost.

"But it is still a big picture item and it is one that is going to bring a lot of benefit to Mitchell in the short-term, as well as the long-term.

"We'll be putting it out to tender in the next month and we'd like to get it built just as quickly as we can."